Updated: February 12, 2025
In recent years, Portugal has seen an influx of expats looking to take advantage of programs like Portugal’s Golden Visa and the D7 Visa and make the country their new home – and a big factor in their decision, aside from the sublime climate, glorious beaches, and high quality of life, is the cost of living in Portugal vs the USA.
Portugal has become an ideal destination among Americans because the cost of living in Portugal compared to the USA is significantly cheaper. The cost of living, including rent, is almost 40 percent lower in Portugal than in the United States.
In this article, we’ll compare the cost of living in Portugal vs USA, looking at housing costs, groceries, transportation and utility costs, private and international schools, plus more, so that you are clued up on what to expect in terms of costs of living should you be considering joining the 14,000 plus American expats already residing in Portugal.
Relocating to Portugal: Key Drivers
Relocating to a new country is never an easy choice to make. There are a lot of adjustments to make when building your life in a new country, but this can be made easier when the country offers a warm climate, the rich culture and warmth of Portuguese people, picturesque landscapes, and stunning beaches. These aspects are part of what makes Portugal such a welcoming and ideal choice for so many expats. The affordability of the country makes the move that bit sweeter and is a considerable factor in why so many expats are heading to Portugal.
Exploring the Cost of Living in Portugal vs USA
First things first, is Portugal expensive? The cost of living is one of the most important factors to consider when relocating to a new country. Fortunately for expats in search of countries with a low cost of living and high quality of life, the cost of living is fairly affordable in Portugal compared to many other countries in Western Europe and compared with the cost of living in America. Â
It is also one of the few countries in the world where expats consistently highly rate Portugal as a great country to relocate to due to the efficient public healthcare system, stable economy, exceptionally affordable housing prices, and finally, the sublime Mediterranean climate and beautiful beaches.Â
Our residence and citizenship division, Global Citizen Solutions, has a pioneering Quality of Life Index that ranks countries based on the cost of living, Sustainable Development Goals, levels of freedom, happiness levels, migrant acceptance, and environmental performance. Portugal is ranked 6th on the Index, while the United States of America (USA) is ranked 38th.Â
An international cost of living comparison
So, what is the cost of living in Portugal vs US. A good way to get a more detailed idea of the cost of living in Portugal vs the US is to compare the cost of living between major cities in both countries. Below, we will share a cost-of-living comparison between the capitals of Portugal and America.Â
- Cost of living in Lisbon, including rent, is around 43 percent lower than in Washington, DCÂ Â
- Average rent prices are around 51 percent lower in Lisbon than in Washington, DCÂ Â
- Grocery prices are around 49 percent lower in Lisbon than in Washington, DCÂ Â
- Restaurant prices are almost 48 percent lower in Lisbon than in Washington, DCÂ
Living Expenses in Portugal vs the USA
As we have established, for American expats earning foreign income or a monthly salary higher than the Portuguese minimum wage of €870, living in Portugal is affordable and, generally speaking, considerably lower than the average cost of living in the US. Â
The cost of living in Portugal vs USA highlights the affordability of Portugal. Living in Portugal offers foreign residents certain tax benefits and, while the popular NHR program has come to an end, the Tax Incentive for Scientific Research and Innovation (the so-called Portugal NHR 2.0.) is taking its place. Â
Comparing living costs Portugal vs USA shows that daily expenses are considered more affordable in Portugal than in several other countries when it comes to buying food and fresh produce, public transportation costs, and gas prices, and other general living costs. Let’s have a look at some more specific examples.Â
Groceries and household essentials
The Portugal cost of living vs USA is affordable, and this extends to daily expenses. Groceries are pretty affordable in Portugal, particularly when you buy local goods rather than imported products. Anything grown or caught in Portugal, such as fruit, vegetables, seafood, and meat, is guaranteed to be more affordable. Â
In Portugal, monthly grocery costs range from around €150- €350 for a single person, while in the USA, monthly costs are usually between €300- €400, or even more. This will obviously depend on your lifestyle, location, and the supermarket you choose, in addition to whether you buy locally or shop for imported produce. Â
The table below outlines the average prices of some basic food items in Portugal compared to USA.Â
Item | Price in Portugal | Price in the USA |
1 liter of milk | $0.97 (€0.94) | $1.05 (€1.02) |
Loaf of fresh white bread (500g) | $3.61 (€3.52) | $3.61 (3.5€) |
A dozen eggs | $2.75 (€2.67) | $3.87 (€3.76) |
1kg apples | $2.03 (€1.97) | $5.26 (€5.11) |
1kg chicken fillets | $6.88 (€6.68) | $12.03 (€11.69) |
1kg beef round | $12/79 (€12/43) | $16.10 (€15.65) |
1kg local cheese | $10.60 (€10.30) | $12.93 (€12.56) |
0.5 liter bottle of domestic beer | $1.17 (€0.69) | $1.92 (€1.87) |
Mid-range bottle of wine | $5.14 (€4.99) | $15 (€14.57) |
Leisure and entertainment in Portugal compared to the US
Now, let’s look at some of the costs related to recreational activities, sports, hobbies, movies, and other entertainment. When looking at the Portugal cost of living compared to US, the southern European country also comes out on top. While living in Portugal you will find that even miscellaneous services such as haircuts, home repairs, garbage collection, and other services are available at cheaper rates.Â
Sports and fitness
Staying in shape in Portugal is much more affordable than it is in the US. The average monthly fee at a fitness club for one adult is $39 (€38) in Portugal, while access to a fitness club in America will set you back about $47 (€45) per month.Â
Alcohol costs
As you can see from the table, alcohol is significantly cheaper in Portugal than in the USA. A good bottle of wine will set you back around €5 in Portugal but costs three times as much in the USA. Similarly, in Portugal, a bottle of domestic beer is €2.50 but it will cost over double the price in the USA. Imported beer is not much more expensive at €3 in Portugal, while in the USA, it clocks in at closer to €7.Â
Eating out costs
In Portugal, eating out is a big part of the local culture, but when you look at the cost of living US vs Portugal, you’ll be pleasantly surprised by how affordable it actually is to dine out in Portugal. It certainly won’t break the bank, as it can do in the USA.Â
At a local pastelaria (pastry shop) you’ll usually find a lunch menu for €5 and a toasted sandwich for about €2 or €3. At a café, lunch, including wine or coffee, usually costs between €8 and €12. A regular cappuccino will cost you €1.90 and gets cheaper the further away you move from the city centers.Â
For dinner options in Portugal, a meal at an inexpensive restaurant will cost around €10, while a three-course meal for two at a mid-range restaurant will cost €45. In terms of fast food, a McMeal or equivalent combo meal at McDonald’s will cost €8, while the same meal will cost €10.69 in the USA.Â
Transportation costs in Portugal vs USA
For the most part, transportation costs in Portugal are lower than in the USA. Some exceptions include the costs of purchasing petrol and a new car, which are generally more affordable in the USA.Â
However, if you prefer to use public transportation in Portugal, you’ll find it much cheaper there. Here, a monthly pass costs €40, a one-way ticket on local transportation costs €1.95, and the cross-country train ticket, also known as the Portugal Rail Pass, can be purchased for just €49.Â
School costs in Portugal vs USA
As in any country, education can come at a high cost, depending on the option you choose. Educational costs include tuition fees for private and international schools and universities and additional educational expenses like books, supplies, and possibly accommodation and public transportation costs. If your children are not of school age yet, you will need to consider childcare services such as babysitting and early education programs. The monthly fee for babysitting or kindergarten in Portugal compared to the USA average of €1,370 is just €454.Â
In Portugal, public school is free for all Portuguese citizens and foreign residents. However, if you choose to send your children to one of the exclusive private schools or international schools in Portugal, you will find yourself paying upwards of €11,251 each year (average for one child annually). This cost will vary depending on the school and your child’s grade, with options more affordable than this. In comparison, private international schools in the USA will cost around €22,900 per year.Â
Traveling costs
A highlight of Portugal is that traveling around the country is quite affordable. Portugal has a great public transport system, and you spend as little as €80 a day on activities. Of course, the cost of accommodation will vary depending on where you stay and the kind of property it is. Â
Healthcare costs
The Portugal healthcare system is excellent and offers both public and private healthcare options. You also shouldn’t have a problem finding doctors who are comfortable conversing in English, which should put you at ease if you don’t speak Portuguese. Children under 18 years and seniors over 65 receive free medical care, while everyone else is required to pay a small contribution.Â
While healthcare here is not completely free, it is affordable. The World Health Organization ranked Portugal in 12th place in their assessment of healthcare systems. The World Index of Healthcare Innovation considers choice, quality, science and technology, and fiscal sustainability in their ranking and listed Portugal in 22nd position in 2022. Numbeo’s 2025 Healthcare Index ranks Portugal in 23rd position. Â
It is also a well-known fact that private health insurance is fairly affordable in Portugal. The cost of health insurance for expats in Portugal offering basic coverage ranges between 25 to €35 per month while in the United States most Americans pay around €500 per month for a basic private healthcare plan.Â
Item | Location | Cost |
GP VISIT | In the US | $100 |
Portugal public healthcare | Free or €5 ($6.17) | |
Portugal private healthcare | €50 ($61.55) | |
Dental Cleaning | In the US | $120 |
Portugal public healthcare | Free | |
Portugal private healthcare | €25 ($30.85) | |
Hip replacement surgery | In the US | $40,000 |
Portugal public healthcare | Minimal co-pay | |
Portugal private healthcare | €4,000-€20,000 ($4,924-$24,618) | |
Mammogram | In the US | $250 |
Portugal public healthcare | Minimal co-pay | |
Portugal private healthcare | €75 ($92.32) |
Cost of living Portugal vs USA: Housing costs
Housing costs in Portugal are generally much more affordable than in the USA. In Lisbon, the capital of Portugal, the average asking price for a property stood at €6,934 per square meter, reduced to €4,935 if you consider the metropolitan area. It is important to bear in mind that prices will vary between large cities like Lisbon, which is the most expensive city to live in Portugal, and the second largest city, Porto, and other locations. Â
Our cost of living in Lisbon and the cost of living in Porto guides offer more detailed insight into housing and other monthly costs in each Portuguese city.Â
Bear in mind that if you buy property in Portugal, you will need to take into account property taxes. At the time of purchase, you will need to pay around 0-10 percent of the property purchase price and a Stamp Duty of 0.8 percent. In Portugal, property tax (IMI) ranges from 0.3 percent to 0.5 percent of the property’s total value for urban properties and 0.8 percent for rural properties. This is a municipal tax that you will need to pay on an annual basis. Â
When it comes to renting, in Portugal, a one-bedroom furnished home in the city center will cost €93, although outside the city center this will drop to around €740. In the United States, the average rent for a one-bedroom apartment in a city center is around €1,693 per month in the city center and €1,395 outside the city center. Â
Electricity and bills expenses in Portugal vs USA
In Portugal, the combined cost of electricity, heating, air conditioning, water, and garbage for a 185m2 apartment will cost €117. In the USA, the average cost of utilities is around €200. This cost will vary based on the season and how often you use amenities like aircon and heating. In Portugal, apartments can get quite cold during winter, so make sure yours has a good heating system.Â
Cost of Moving to Portugal
We’ve deep dived into the cost of living in Portugal compared to US, but what about the costs of moving to Portugal. When relocating to Portugal, it is important to consider the actual cost of moving to Portugal from the USA. You can expect to incur the following costs:Â
- Shipping expenses to transport your belongings Â
- Plane ticket to Portugal Â
- Rental deposit (if renting)Â Â
- New phone plan Â
- Cost of additional goods to help you get settled Â
These costs will vary based on the mode of shipping (such as plane or ship), the airline you choose, the area you rent in or buy property in, and so on.Â
How to move to Portugal?
To move to Portugal from the USA, you need to have the legal right to reside in the country. Visit our Portugal Immigration Guide for more information.
The most popular options are the Portugal Golden Visa, which has become one of the most popular residency by investment schemes in the world, since its inception in 2012. Alongside this, the D7 Visa (passive income visa) and Digital Nomad Visa are also very popular options.
You can get in touch with our residency and citizenship division, Global Citizen Solutions, to kickstart your residency in Portugal.
As you can see, there are many benefits to moving to Portugal from the USA. The only downside you may find is dealing with Portugal’s bureaucratic processes, which many foreigners find a bit difficult to deal with. It helps to have a trusted professional who speaks the language to help you during these times.
Aside from this, you are bound to experience a greater quality of life at a more affordable cost, leaving you free to enjoy the rich culture, delicious cuisine, and breathtaking sites the country has to offer.
Goldcrest: How We Can Help You
Goldcrest is a local buyer’s agent situated in Portugal. We provide insightful real estate expertise and strategic advice. From sourcing to property acquisition, we help clients identify outstanding investment opportunities in some of Portugal’s finest locations.
Whether you’re a family looking to relocate or invest in land for redevelopment, our team of experts can help you find the right property without the hassle or fuss. Contact us to get the ball rolling on your Portuguese real estate investment.
Frequently Asked Questions About the Cost of Living in Portugal vs USAÂ
What are the living costs in Portugal versus the US?
The cost of living in Portugal is 36.6 percent lower than in the United States (excluding rent). Living in Portugal can be a cost-saving option, allowing individuals to stretch their budget and potentially save money compared to living in the US.
How much does it cost to live in Portugal?
The average cost of living in Portugal is around €1,500 per month, depending on where in Portugal you live. Portugal is considered one of the most affordable countries in Western Europe and is, on average, 36.6 percent cheaper than living in the United States, excluding rent. With rent, the cost of living in Portugal is almost 40 percent cheaper.Â
Is it cheaper to live in Portugal or the USA?
It is cheaper to live in Portugal, where the cost of living in Lisbon is almost 43 percent lower than the living cost in Washington DC, USA. Bear in mind, also, that Lisbon is the most expensive part of Portugal to live in.
What are the monthly costs in Portugal?
Your monthly costs in Portugal will vary depending on the area you live in, whether you are an individual or family, and your lifestyle choices.
What are the biggest expenses in a month in Portugal?
In Portugal, your biggest expense each month will likely be your rent. A one-bedroom apartment in the city center can cost around €935 each month, and your monthly utilities can cost around €114.
How expensive is Portugal compared to other countries in Western Europe?
Portugal is generally more affordable than many Western European nations, offering a lower cost of living while maintaining a high quality of life. The cost of living in Portugal is about 29 percent cheaper than both the UK and France.Â
How much is rent in Portugal?
Rent in Portugal is, on average, 45.5 percent lower than in the United States. A one-bedroom apartment in the city center will set you back €935, increasing to €1,608 for a three person apartment. Prices decrease as you move further away from the center.Â
What is the cost of living in Portugal vs USA?
The cost of living in Portugal is around 36.6 percent lower than in the USA, with grocery prices 49 percent lower and dining out around 44 percent lower.Â
How can I move to Portugal?
As a US national, you will need a residency visa to move to Portugal, with popular options being the D7 Visa for passive income earners or the D8 (Digital Nomad) Visa for remote workers. The popular Portugal Golden Visa (residency-by-investment permit) is also a popular route for Americans.Â
What is the cost of living in Lisbon, Portugal vs California?
Lisbon offers a lower cost of living compared to major Californian cities, with more affordable housing, transportation, and dining options. Lisbon is around 39 percent cheaper than Sacramento.
How much money do you need to live comfortably in Portugal?
A family of four estimated monthly costs are €2,406.7 without rent, while a single person’s estimated monthly costs are €680.2 without rent.
Is it cheaper to live in Portugal or in the USA?
Living in Portugal is generally cheaper than in the USA, with almost all things more affordable, including housing, healthcare and health insurance, and daily living expenses. The education and healthcare systems in Portugal are, for the most part, excellent.Â
What are the pros and cons of living in Portugal?
Pros include a sublime climate, affordable cost of living, high quality of life, and rich culture, alongside high quality public healthcare, affordable private health insurance, and a world-class education system. Cons may involve lower average wages and language barriers for non-Portuguese speakers, plus be sure to check out that your home has sufficient heating, as many properties lack central heating and it can get cold in the winter months.Â
What is the cost of living in Portugal for a couple?
A couple with a mid-range income can comfortably live on €1,700 per month in Portugal’s smaller cities. However, in Lisbon’s city center, monthly expenses, including rent, start at around €2,000 or more.
What is the cost of living in the Algarve, Portugal?
The Algarve region offers a relatively affordable cost of living, with lower housing and food expenses compared to Lisbon. Compared with prices in America, you may be pleasantly surprised by how reasonable prices are, from healthcare to dining out.Â
What is the cost of living in Portugal versus Canada?
The cost of Living in Portugal is almost 30 lower than in Canada, not including rent, with most things being more affordable, from healthcare to dining out.Â
What is the cost of living in Portugal compared to the UK?
The cost of Living in Portugal is almost 30 percent lower than in the United Kingdom, not including rent. This is one of the key reasons why many British nationals are relocating to Portugal.Â
What is the cost of living in Portugal versus India?
The cost of Living in India is around 53 percent lower than in Portugal, not including rent. Portugal does, however, remain one of the most affordable countries in Europe
Can you live in Portugal for $1,000 a month?
Living on $1,000 a month in Portugal is challenging, especially in urban areas, but it may be possible in smaller towns with careful budgeting.
What is the cost of living in Portugal for international students?
International students can expect monthly expenses to be around €700-€1,200, including accommodation, food, and transportation. This will obviously depend on where they are living, as prices in Lisbon and Porto may require a bigger budget.Â
Are utilities and internet expensive in Portugal?
Utilities and internet services in Portugal are reasonably priced, contributing to the country’s overall affordable cost of living. Monthly utilities can cost around €114.
How much does it typically cost to dine out or buy groceries in Portugal?
Dining out and groceries are affordable in Portugal, with local markets and eateries offering good value. You can usually eat out at an inexpensive restaurant for €8 to €15, and this will often include a coffee and a dessert.
What are the average childcare and education expenses in Portugal?
The monthly fee for babysitting or kindergarten in Portugal compared to the USA average of €1,370 is just €454. Education costs will really depend on whether you opt for public education (which is free) or international schools, although even this option is very affordable when compared with education in the USA.
Is it expensive to maintain a lifestyle in Portugal for expats?
This really depends on your home country, although expats from the USA often find maintaining a comfortable lifestyle in Portugal to be affordable, thanks to lower living costs compared to back home.Â
Are utility costs high in Portugal compared to other Western European countries?
Monthly utilities can cost around €114, which is cheaper than many other Western European countries, such as the UK.Â
What is the average cost of living in Portugal?
The average cost of living in Portugal is approximately €2,407 per month for a family of four, excluding rent.
Is the cost of living in Portugal low?
Yes, Portugal is known for its low cost of living compared to many Western countries, making it a very attractive destination for expats.Â
Can you live in Portugal on $3,000 a month?
Absolutely! Living on $3,000 a month in Portugal allows for a comfortable lifestyle, covering housing, utilities, food, and leisure activities.
Can you live in Portugal on $2,000 a month?
Yes, it’s possible to live on $2,000 a month in Portugal, especially outside major cities, by managing expenses carefully.
Is the living cost in Portugal affordable?
The cost of living in Portugal is generally lower than in the United States. This is particularly the case for housing, utilities, and groceries. A couple can manage their expenses with €1,700 per month in Portugal’s smaller cities. However, in central Lisbon, living costs, including rent, typically begin at €2,000 per month.
Is Lisbon expensive to live in?
In Portugal’s smaller cities, a couple can live on €1,700 per month. However, in Lisbon’s city center, monthly expenses will be higher, with everything from housing to eating out generally more expensive in the capital.